The New Jersey Housing Market is always changing.
Check it Out Below for Home Sellers: https://www.simplifyingthemarket.com/en/sellers/?a=385400-f014a7e31b0d83731334c99e34b1ace9
For Home Buyers: https://www.simplifyingthemarket.com/en/buyers/?a=385400-f014a7e31b0d83731334c99e34b1ace9
A recent survey revealed that many consumers believe there’s a housing bubble beginning to form. That feeling is understandable, as year-over-year home price appreciation is still in the double digits. However, this market is very different than it was during the housing crash 15 years ago. Here are four key reasons why today is nothing like the last time.
The affordability formula has three components: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time. Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.
Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate, even after the recent spike, is still well below 6%. That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.
In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addresses that exact point:
“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”
Affordability isn’t as strong as it was last year, but it’s much better than it was during the boom. Here’s a chart showing that difference:
If costs were so prohibitive, how did so many homes sell during the housing boom?
During the housing bubble, it was much easier to get a mortgage than it is today. As an example, let’s review the number of mortgages granted to purchasers with credit scores under 620. According to credit.org, a credit score between 550-619 is considered poor. In defining those with a score below 620, they explain:
“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”
Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the 14 years since.
Mortgage standards are nothing like they were the last time. Purchasers that acquired a mortgage over the last decade are much more qualified. Let’s take a look at what that means going forward.
The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:
There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. However, there are fewer than 800,000 homeowners left in the program today, and most of those will be able to work out a repayment plan with their banks.
Rick Sharga, Executive Vice President of RealtyTrac, explains:
“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”
Why are there so few foreclosures now? Today, homeowners are equity rich, not tapped out.
In the run-up to the housing bubble, some homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area.
Homeowners, however, have learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like the last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000, what happened last time won’t happen today.
As the latest Homeowner Equity Insights report from CoreLogic explains:
“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”
There will be nowhere near the same number of foreclosures as we saw during the crash. So, what does that mean for the housing market?
The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. As the next graph shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing the acceleration in home values to continue.
Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.
If you’re worried that we’re making the same mistakes that led to the housing crash, the graphs above show data and insights to help alleviate your concerns.
A New Jersey Probate Real Estate Sale in several ways different than a traditional approach. Our New Jersey Probate Specialist and Team is Skilled in Selling Probate and Trust Property.
Firstly when considering the benefits of specialized knowledge and years of experience as you interview real estate agents, you must have some very specific questions to ask.
1. Have you Sold real property through Trust or Probate?
Any agent may casually say yes, but be sure to ask them for details about the transaction.
2. How Long have you been selling probate and trust real estate?
Probate and Trust real estate can be very complicated. It is extremely important to have a seasoned agent who has experience within this specialized marketplace. The agent must be familiar with unique disclosures as-well-as the terms of the Probate Code so they can handle the sale accurately and promptly. Finally, the agents should have an established system for Clear Communication between the parties and be able to explain processes clearly and concise.
3. How is a Trust/Probate sale Different from a Typical Real Estate Transaction?
Probate and Trust real estate requires special disclosures and listing agreements, diligent attention to the ever changing probate law and a unique marketing strategy.
4. How do you market Probate and Trust Real Estate?
The agent must have a systematic approach and be prepared to present an aggressive marketing tactics, including marketing the property even after the initial offer has been accepted.
5. Do you have Samples of Documents that I would Have to Sign or Read?
Firstly, Agents skilled in Trust and Probate real estate should have the most current contract documentation and disclosure forms for Real Property transactions. They should be willing to give you copies of these documents in order to provide straightforward explanations. During the Probate process, the agent will often be called upon to explain the paperwork and process to lawyers. Also, , clients, accountants, trustees, etc. You must be sure the agent’s explanations are clear and complete.
1. Not Educating Yourself on the Probate Process and if you Need an Attorney
In any situation you can educate yourself about the process. Certainly there will be instances in which you recognize that you may be feeling lost. While each situation is different, it makes sense to speak with an attorney about the process and see what they say. Deciding to use an attorney based on the complexity of your case, proximity or even the time it takes to deal with the Estate is absolutely understandable. Estate Planning firms, Financial Planners, Contractors and Real Estate Agents are experts in their perspective field. This knowledge will pay off in the short and long term. Hiring an attorney is highly recommended.
2. Not picking up mail from the Decedent’s property
You do not want to miss an important piece of mail, notices or even claims from creditors or lenders. You also do not want mail piling up which could lead to vandalism or unwanted guests. When mail piles up it is a sign that the property is vacant. As soon as you are able, ask the Post Office to forward all mail to an address or Post Office Box that you have access to.
3. Not Keeping up with Communication to All Heirs
Immediately on the outset, it is critical that all heirs are on the same page and are in agreements that you handle the estate. Setbacks may arise along the way and it is very important to keep everyone up to date.
4. Marketing the Real Estate too Late
If you would like to settle the estate as quickly as possible, it is never a good idea of waiting too long to begin the marketing of any real estate. Once you have been approved as the Executor or Administrator of the estate you may begin soliciting offers on the property. Listing with a NJ Probate Real Estate Agent will help with advice, marketing the home to its fullest potential and go into escrow. The property will not close until all testamentary and letters of administration have been acquired. It is important to have an Agent that understands the Probate process.
5. Accurate Accounting Records
During the process, you will encounter receipts, disbursements, and other items. Failing to describe such may result in inaccurate gains, dividends, and interest payments. At the time of the estate settling, all of the numbers must align correctly. If not, you may get objections from heirs or even a judge. A professional CPA or book keeper can help you. In some cases where records were not properly kept, the probate process could last for over a year when it could be concluded in half the time.
6. Waiting too Long to Begin the Process
Losing a loved one is extremely devastating. Moving forward can seem emotionally impossible. Waiting too long will add pressure and unwanted demands from others. Give yourself time to mourn, but also realize the longer you wait, taxes add up, creditors become pushier, and heirs may have greater demands.
7. Lack of Accurate Inventory for Assets
Accurate preparation for inventory of assets should reflect only assets that have actually been collected and placed under the control of the administrator or executor. Everything must be accounted for and collected as to understand where and how things will be passed to heirs under the will or be intestate succession.
8. Failing to Properly Take Control and Protect the Estate
It is critical in the case of real estate. The property must be properly secured, insured and safe from break-ins. It must also be protected against loss for non payment of taxes and mortgages. If proximity is working against you, it can be especially difficult and challenging. You must take exclusive control over all aspects of the estate, including cash and bank accounts.
9. Know Your Options When It Comes to Selling Real Estate
Generally, Real Estate is be biggest component of the estate’s assets. You must know your options. The straight forward approach is to list with a Realtor. You may also find that you could fetch a better price after some repairs. If you do not have the time or money to handle the repairs, or are in a rush and just want to get it done, you could sell if for cash with a quick closing. Understanding all of the options will give you flexibility.
10. Don’t Choose Friends Over the Right Professional
For example, you may find yourself surrounded by well meaning friends that want to help. You may have an Attorney that does not handle Estates, but will help you out with probate. In these cases, you must be cautious. Having a NJ Probate Real Estate Agent with probate experience and specializes in the area is extremely important.
11. Failing to Conclude the Estate
Oftentimes an Executor will get to the end of an estate where the distributions of money take place without closing the estate. In fact, before distributing any of the assets, you should go to a court and get the judge’s okay, or you may skip the piece of the process if all of the family is in agreement. By documenting everything that takes place among family members will work in your favor to protect the Executor from liability or any issues that may arise.
Firstly, we not only understand and sell NJ Probate Real Estate but also create a customized approach to marketing and selling the home. Furthermore, this is based on our situational management approach. Managing the sale of a Probate home for those with financial and emotional challenges that many Probate clients face is our top priority. When selling a long-held family home, emotions are involved. Get in touch with the McLain Realty Team today. Our team works very closely to limit the stress that is placed on every Probate sale.
McLain Realty Team
Owner/New Jersey Probate Specialist
Direct: 908-878-9356
Office: 908-923-4536
McLainRealtyTeam@gmail.com
Firstly, Coronavirus (COVID-19) has caused massive global uncertainty. This includes a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?
The National Association of Realtors (NAR) anticipates:
“At the very least, the coronavirus could cause some people to put home sales on hold.”
While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.
For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
According to the National Association of Home Builders (NAHB):
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world. Finally, we do not anticipate much effect for the Coronavirus on the US Housing Market.
Getting an accurate value of your home can be difficult. Firstly, without understanding the nuances of the real estate market, establishing the market value can prove difficult.
Moreover it is very important to establish a relationship with a real estate team. For Instance, the McLain Realty Team conducts hundreds of Broker Price Opinions each and every year. This process will lead one to get the most accurate NJ Home Value. As a result, we have established a site with the most up to date information and algor
It can be difficult at times to get an accurate value of your home. Without understanding the Real Estate Market fully, getting an accurate NJ Home Value Online would prove impossible. Similarly most of the popular websites will give you absolutely inaccurate information. Further, they take all of the sales in the area near your home. These include foreclosures, short-sales, etc. Again, these homes should not be taken into account with your valuation.
NJ Home Value Online takes the guesswork out for you. Ofcourse it is still absolutely necessary for the real estate agent to view the interior of the home in person. This will allow all of the improvements and small details that could possibly be missed with the result through our online purposes.
Finally, contact us for More Information and to set up your FREE Complimentary Home Valuation.
www.NJHomeValueOnline.com
McLain Realty Team
Office: 908-923-4538 Cell: 908-878-9356
REMAX365NJ@Gmail.com
We’re currently in the longest economic recovery in U.S. history. That has caused some to ask experts to project when the next economic slowdown (recession) could occur. Two years ago, 67% of the economists surveyed by the Wall Street Journal (WSJ) for the Economic Forecasting Survey predicted we would have a recession no later than the end of this year (2020). The same study done just three months ago showed more than one third of the economists still saw an economic slowdown right around the corner.
The news caused concern among consumers. This is evidenced by a recent survey done by realtor.com that shows 53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur by the end of this year.
Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3% of those economists now believe we’re in danger of a recession occurring this year (see graph below):
The WSJ article strongly stated,
“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”
This optimism regarding the economy was repeated by others as well.
CNBC, quoting Goldman Sachs economists:
“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”
“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”
“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”
Robert A. Dye, Chief Economist at Comerica Bank:
“I expect that the U.S. economy will avoid a recession in 2020.”
Here are Reasons to Buy a Home this Fall
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insights Report shows that home prices have appreciated by 3.6% over the last 12 months. The same report predicts prices will continue to increase at a rate of 5.8% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase Next Year
The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have recently hovered just above 3.5%. This is great news for buyers in the market right now, because low interest rates increase your purchasing power – but don’t wait! Most experts predict rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is needed to buy your next home.
3. Either Way, You Are Paying a Mortgage
There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you’re living rent-free with your parents, you are paying a mortgage – either yours or that of your landlord.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing costs to work for you?
4. It’s Time to Move on With Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears both are on the rise.
But, what if they weren’t? Threfore, Would you wait?
Look at the actual reason you’re buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over custom renovations, maybe now is the time to buy.
Finally, Buying a home sooner rather than later could lead to substantial savings. Let’s get together to determine if homeownership is the right choice for you and your family this fall.
Do you have a Luxury Home or Property and Need the best luxury real estate agent? We have great news for you! Our Team has sold, and for Top Dollar, Many Luxury Real Estate.
Firstly, our Luxury Division is set up for just one thing, selling the luxury market. Whether you have a Mansion for sale in Hunterdon County or an Estate in Alpine NJ, we can handle it all. Through our exclusive systems, we know and understand what it takes to get these types of properties sold.
Secondly, our team understands the complex nature of the Luxury Home for Realtor. For this reason, we have engineered a unique marketing systems that sells the luxury market. Our Luxury Home Realtor Team delivers on simply that, selling the luxury market. Accordingly, selling luxury homes, mansions and estates in the market may take longer, but we get top dollar. Although we service the entire market, our Luxury Home division caters to only the High End Properties.
In fact, we utilize all resources, exposure, and innovative programs that we have to offer. We go above and beyond to implement specific and specialized marketing and sales techniques for our luxury clients. As a matter of fact, we cater to each individual property differently.
Finally, our over-sized clean and sharp looking luxury sale signs and high gloss brochures are set to target the main luxury sites. We also target specific publications, demographics and our Luxury Home Realtor simply does it all.
Contact Us for Immediate Concierge Service:
RE/MAX 365
Office: 908-923-4538 REMAX365NJ@Gmail.com
Firstly, at RE/MAX 365, our New Jersey Short Sale Specialists is the Leading Short Sale Negotiation Company. We are the Top Short Sale Company on the East Coast.
If you or someone you know needs help, We are here for you. We are your one-stop shop for the most superior Short Sale Negotiation Services.
In addition, we offer a true, all-inclusive Short Sale Negotiation suite of services. Also, we represent and help attorneys, homeowners and other real estate professionals.
Equally important we have perfected our negotiation process so thoroughly that we are confident in our ability to get the Short Sale Contract approved and Fast!
Do you owe more than your home is worth and need to sell now? Well, if you are not sure what to do, we have the answer for New Je
Short Sale Specialists.
In light of, you can ultimately sell your home, avoid bankruptcy and foreclosure. This will save your credit and you could possibly walk away with no debt or tax consequences. Furthermore, you can do all of this by means of a short sale.
Are you one of the THOUSANDS of Homeowners who need to sell, but owes more on your home than it is worth? If you are wondering or ever have wondered what your options are in dealing with your lender, we have great news for you.
Through a process called a short sale, we can help you:
If you owe more money than your home is worth, and you Must Sell, our Short Sale New Jersey Team can Help you! We will sell your home quickly, easily and for the most amount of money. But, most importantly, you will not foreclosure or declare bankruptcy.
Not to mention, you will pay absolutely nothing in agent commissions. You may also possibly owe nothing to your lender. Foreclosure and bankruptcy will stain you credit for 7 years. Instead of having to wait 7 years to buy another home, you may be able to buy again within 24 months, even less in some instances.
Unfortunately, most real estate agents, and mortgage brokers are not experienced in short sales. They do not have the necessary experience to move along the short sale transact with speed and efficiency. Moreover, short sales are time intensive transactions and require detail-oriented processing in order to get the job done correctly. If your agent slacks off, drops the ball, makes a mistake in the short sale process, you could very well wind up in a horrible situation with respect to you lender.
Whether you are thinking about selling your home and participating in a short sale, time is of the essence. The sooner you start the process, the more options you will have. Procrastinating is the worst mistake you can make. Additionally, all it takes is a phone call to get started. Because each situation is unique, it is best to contact us for a FREE one-on-one consultation in order to understand your options!
Finally, at RE/MAX 365, our team is comprised of expert negotiators, attorneys, and real estate professionals with our goal to educate and assist homeowners. This way you can make the right selling decision for whatever your personal financial situation may be. Most believe that short sales are a real estate issue. This is not true. Short sales are a mortgage lending issues and we have the experience and knowledge to be successful.
Firstly, Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.
Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:
In addition, the day after the index was released, Freddie Mac also announced the 30-year fixed-rate mortgage rate fell to its lowest level in three years.
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae explained the uptick in the index:
“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”
Finally, Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year.
For More Information, Contact RE/MAX 365
NJ Award Winning Real Estate Team
Office: 908-923-4538
remax365nj@gmail.com